Trump’s Tax Bill To Add $2.4 Trillion To Deficit, Not $3.8 Trillion, Says CBO

President Donald Trump’s “Big Beautiful Bill” is now expected to add $2.4 trillion to the U.S. federal deficit, according to the Congressional Budget Office (CBO).

This is a downward revision from CBO’s previous estimate of a $3.8 trillion deficit.

President Trump’s tax bill extends the tax cuts from his previous term. It passed a crucial vote in the House in May by a razor-thin margin of 215-214.

At the time, the non-partisan CBO projected that Trump’s tax bill would increase the federal deficit by $3.8 trillion over the next decade, adding to the current deficit of $36.2 trillion.

“In general, resources would decrease for households in the lowest decile (tenth) of the income distribution, whereas resources would increase for households in the highest decile,” it said.

The CBO has also estimated that nearly 10.9 million people would be without insurance by 2034 due to the changes proposed by the Trump administration to Medicaid in the tax bill.

Trump’s tax bill has also been criticized by Tesla CEO Elon Musk, who led the Department of Government Efficiency (DOGE) efforts.

Days after leaving the administration, Musk called the Trump tax bill a “disgusting abomination.”

“This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it,” he said in a post on social media platform X.

On Wednesday, he followed it up with more criticism, saying that if the deficit spending continues, no money will be left for anything other than interest payments.

Musk is not alone in his criticism of Trump’s tax bill – Sen. Rand Paul (R-KY) said that he is not open to supporting the increase in the debt limit, which drew a sharp reaction from the President.

Paul says there are three other Republican holdouts, which could prevent the Trump administration from passing the tax bill in the Senate, where the GOP holds a 53-47 majority.

Meanwhile, the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, was up 0.26% at the time of writing.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Boeing 737 Max Production Cap Stays In Place For Now, Says FAA